Chinese new energy vehicle startup Nio is advancing a comprehensive organizational restructuring aiming to focus resources on projects that can create value within three years, according to a media report.

Several Nio departments will undergo organizational streamlining and consolidation based on its annual operational goals, an informed source told The Paper yesterday. For example, Nio’s mobile software team merged into the digital cockpit team, resulting in a significant reduction of redundant positions.

Positions and projects that cannot create user value will be decisively terminated, the Shanghai-based carmaker’s Chief Executive Officer Li Bin said in a recent internal meeting.

Over the past year, Nio carried out a business transformation that broke down its units into several non-overlapping fundamental departments, each with a clear assessment mechanism for accountability. In areas such as supply chain and product development, the firm promoted great reforms and strengthened cost management, the source noted.

Li tightened supply chain management and got personally involved in many supply chain procurement projects, examining costs and directly participating in price negotiations for core components, such as batteries, according to insiders. Moreover, Li took charge of analyzing procurement cost reduction trends and started setting short-term targets for the supply chain team, based on weekly sales fluctuations.

Nio delivered about 222,000 NEVs last year, up 39 percent from the year before. So far, the company has delivered a total of 650,800 Nio-branded cars and 20,800 Onvo-branded ones.

Nio reported revenue of CNY18.7 billion (USD2.6 billion) and a net loss of nearly CNY5.1 billion (USD700 million) in the third quarter of last year, down 2.1 percent and up 11 percent, respectively, from a year earlier.